CHAPTER 5

Comprehensive Planning for Complex Projects

DAVID L. PELLS, PM WORLD SERVICES

Preparing a project management (PM) plan is a straightforward effort that promotes and ensures comprehensive project planning. The PM plan is a combination of two plans that are often prepared separately: the traditional management plan, which describes operational management systems and approaches, and the project plan, which includes the work breakdown structure (WBS), logic, schedules, and cost estimates. Thus, it is more comprehensive than either management plans or project plans and reflects an awareness that the team members, the system, and the detailed planning are all critical to project success.

ELEMENTS OF A PROJECT MANAGEMENT PLAN

The project management plan should cover seventeen topics:

1. Introduction/overview

2. Mission and objectives

3. Work scope

4. Planning basis

5. Work breakdown structure

6. Organization development plan

7. Resource plan

8. Procurement and logistics plan

9. Logic and schedules

10. Cost estimates, budgets, and financial management

11. Risk analysis and contingency plan

12. Quality and productivity plan

13. Environmental, safety, and health protection plan

14. Security plan

15. Project planning, control, and administration plan

16. Documentation and configuration management plan

17. Appendix

Introduction/Overview

This is an introduction both to the specific project and to the PM plan document itself. Some background information should be included to provide perspective on the information that follows, such as how the project was initiated, who the customer or sponsor is, how the project is funded, and other contextual factors that may be important to those who read the plan. External factors, such as economic trends, constraints, or opportunities; political or governmental conditions; demographics; or internal organizational factors, can be discussed, but since the introduction should be short, allowing the reader to move into the PM plan quickly, additional external or historical information can be included in the appendix.

Mission and Objectives

The purpose or mission of the project is stated in one or two paragraphs, followed by a set of concrete objectives. The mission statement is all-encompassing, establishing why the project exists (and referencing the business case). Mission statements should reference the customer if the project is being performed under contract or for a third party.

Project objectives are outlined as specific goals to be accomplished and to which status can be applied. For instance, objectives for a small construction project might include a good location; a modern energy-efficient economic design; a fully furnished facility; a complete set of project documents; compliance with all laws, codes, and requirements; a standard profit margin; and a completion date.

Planning becomes straightforward when objectives are defined for key areas. Objectives can be established for every aspect of the project, including the following:

• Technical objectives

• Schedule objectives

• Cost objectives

• Organizational/personnel-related objectives

• Quality objectives

• Environmental safety and health objectives

• Contracting/procurement objectives

• Management system objectives

Well-defined objectives enhance the reliability of subsequent planning. Once objectives are stated in concise terms, they allow for the development of the project scope of work and the work breakdown structure. Mission and objectives should always be agreed to by the customer or project sponsor, and must be understood and supported by the project implementation team.

Work Scope

The work scope section of the PM plan demonstrates how well the project is understood. It includes narrative descriptions of all elements of the project’s scope of work. It clearly identifies the products or services to be provided to the customer. The statement of work should contain enough information to allow development of the WBS, schedules, and cost estimates, as well as assignment of responsibilities.

This section can address the project phases and include special plans associated with those phases, such as the research and development (R&D) plan, engineering/design plans, construction plan, manufacturing plan, facility start-up plan, and transition plan. It may also describe the systems management activities, including systems engineering and integration, to ensure project life cycle perspective. To simplify preparation, the work scope can be prepared in outline form, which can then be used to develop the WBS. Often the WBS and work scope are prepared in parallel, with the resultant narrative description of the work called a WBS dictionary.

Planning Basis

The planning basis section provides for the documentation of key assumptions, requirements, and other factors considered during preparation of the PM plan. Below are some items covered in this section of the PM plan.

Project Deliverables/End Products: A list of all products, documents, and services to be delivered to the customer over the life of the project is required.

Requirements: Requirements may include technical requirements, facilities requirements, data requirements, management requirements, or special instructions. Technical requirements may include codes, standards, laws, engineering or design specifications, models, or examples of the mandatory or recommended compliance of the project. When there are mandatory requirements, such as laws, these must be identified and listed, or the project staff runs the risk of noncompliance and legal prosecution.

Facilities requirements include an initial assessment of types, amount, and quality of facilities needed for the project, along with related utilities, furniture, and equipment. This provides initial bases for estimating quantities and costs associated with those resources. Overlooking facilities issues during project planning leads to schedule slippages, cost overruns, unhappy project participants, and untold headaches for the project managers. For small projects, facility requirements may not be a big issue; for larger projects, they can be critical.

Functional and operational requirements (F&ORs) spell out what the system, facility, or product being produced is intended to do. Where F&ORs exist, listing or identifying them greatly simplifies and facilitates the design process. Mandatory data requirements, management directives, or special instructions are also identified and documented during the planning process. Requirements are often defined or captured in other documents, which are then referenced in the PM plan.

Constraints: Constraints may include known technical limitations, financial ceilings, or schedule “drop-dead” dates. Technical constraints may be related to state-of-the-art capabilities, interface requirements with other systems, or user-related issues (e.g., software that must run on certain types of personal computers). Financial and schedule constraints can be introduced by the customer, and include the lead time associated with procured hardware or funding/budgetary limits.

Approaches/Strategies: The approach or strategies to be utilized can have a major impact on planning. For instance, if all project work is to be performed within the parent (host) organization with minimal subcontract support, that approach impacts planning of resources and organizational issues. If work is to be “fast tracked” by overlapping design and construction activities, or by performing more work in parallel, then that approach can be described. Communication of strategies to project participants begins with devoting several paragraphs to that topic in this section of the PM plan.

Key Assumptions: Every project is planned under some degree of uncertainty. Therefore, assumptions are required to estimate work scope, schedule durations, resource requirements, and cost estimates. Assumptions are also required when defining the management strategies, systems, and procedures to be utilized.

Major assumptions have a significant impact on planning and estimating. The major reason for documenting key assumptions is to provide the project manager with a basis for revising plans when the assumptions are changed (i.e., when a customer changes his or her mind). Key assumptions should be revisited and updated over the life of the project—a major reason why the PM plan should be a living document.

Specifically Excluded Scope: This subject limits the scope of work. It highlights specific issues, such as documentation, training, or follow-on support, which customers often assume but which cost money and have not been included in the project plan. Clarification of these scoping questions saves headaches later, in some cases even avoiding litigation.

Work Breakdown Structure

The WBS, a mandatory component of the PM plan, is a product-oriented hierarchy of the scope of work embodied in a numbered structure that provides a system for organizing the scope in a logical manner. The WBS is prepared in conjunction with the scope of work, and it should be developed to the level of detail where responsibility for work performance is assigned. Responsibility for each element of a WBS is then established.

The most popular presentation of a project WBS is in graphic form, similar to an organization chart. This WBS chart displays project elements and tasks in levels and boxes, representing smaller parts of the project. (For more about the WBS, see Chapter 9, Project Scope Management in Practice.)

Organization Development Plan

This section of the PM plan addresses organization structure, responsibilities, authorities, interfaces, and personnel development, and therefore serves as a framework for planning stakeholder management. For every project, how the people involved are organized, assigned responsibilities, and directed needs to be defined and communicated to the participants. In addition, interfaces among participants both inside and outside the project team require planning. Equally important, training and team-building plans need to be established to promote the quality and productivity of the project work. It is crucial to identify all stakeholders, whether in management, functional areas, project teams, vendors, partners, and clients, customers, or end-users. Understanding the influence, authority, and responsibility of these stakeholders forms the basis for planning.

Organizational Structure: Although not all participants may be involved during early project planning, key positions and participating organizations are identifiable fairly early. A preliminary organization structure in graphic form can be prepared and included in the PM plan. Where possible, names, titles, and phone numbers are included to promote understanding and communication. Organization charts are dated but not finalized until resource allocation plans are prepared, based on detailed work planning and cost estimates. Sample organization charts for three common types of project organization structures can be found in Figures 5-1, 5-2, and 5-3. The functional structure shown in Figure 5-1 is a widespread organizational form. It is characterized by a hierarchical, “chain-of-command” power structure and specialization into functional “silos.”

Authorities: Much has been written about the “authority versus responsibility” issues in project management, especially in matrix organizations (Figure 5-2). The matrix structure seeks to combine the advantages of the functional and the projectized organization, while avoiding their disadvantages. Project and functional components are administratively independent, but interdependent in the execution of projects. Project managers or other project participants are often responsible for project accomplishment without having authority over the resources being employed. For all projects, it is helpful to recognize these issues and to document procedures for resolving conflicts as necessary. Where multiple companies or organizations are integrated into a project organization, contract relationships are referenced or defined, as appropriate. Procedures for resolving problems related to work direction may also need to be established.

Responsibilities: Specific responsibilities of individual project participants should be defined to promote communication and teamwork and to avoid confusion. For large projects, responsibilities of positions or participating organizations are defined. One of the advantages of the projectized organization is the clarity of responsibility for project deliverables and outcomes (Figure 5-3). The fully projectized structure makes projects independent from the rest of the organization, gives the project manager full authority over resources, and facilitates the development of multi-disciplinary technical terms.

Interfaces: On projects involving technical activity, it is common for personnel from the customer’s organization to talk directly with technical staff in the project organization. However, when multiple project participants are interfacing with outside entities—customer representatives, the general public, the press, or others—it is easy for conflicting information to be transmitted. These interfaces can generally be identified and controlled via established protocols. Clearly defining the interfaces highlights where communication is needed and which areas may cause potential communication problems.

Personnel Development: This section of the PM plan outlines the types of training and team-building activities planned for the project. Establishing a plan demonstrates that the project leaders are aware of these issues and plan to improve communication, teamwork, and productivity on the project. Additional training may be necessary if the project utilizes new technologies, equipment, systems, or approaches.

Advantages	Inconveniences
Technical Competency
• Development and maintenance of technical competency in specialized fields • Synergy among specialists	• Filtered perception; lack of an overall view • Difficulty in integrating several specialties: possible conflicts among specialists • Difficulty in creating motivation for the project • Lack of openness to the environment • Risk of neglecting the aspects not related to the specialty
Objectives
• Concentration on the objectives of the function • Pursuing long-term development objectives • Easy reconciliation of internal objectives	• Conflict of priorities with other functional activities • Difficulty in making effective compromises between the variables quality-time-cost • Nobody is exclusively responsible for project objectives • Subordination of the managerial to the technical
Permanence and Stability
• Horizontal relations are clear • Clear definitions of roles and responsibilities • Efficiency improved by standardization • Stability in interpersonal relations • Well-defined career paths • The possibility for organizational learning	• Difficulty in adapting; resistance to change • Difficulties in the internal circulation of information • Slow decision making
Control
• Easier control of quality and performance • Flexibility and economy in the use of labor	• The time variable is less well controlled • Limited liaisons with the outside • Lack of visibility for the client • Limited development of management capabilities among the personnel

FIGURE 5-1. CHARACTERISTICS OF THE FUNCTIONAL STRUCTURE

Adapted from Brain Hobbs and Pierre Menard, “Organizational Choices for Project Management,” in AMA Handbook of Project Management, 1st edition. AMACOM: 1993, pp. 85 and 88.

FIGURE 5-2. THE MATRIX STRUCTURE

Adapted from Brain Hobbs and Pierre Menard, “Organizational Choices for Project Management,” in AMA Handbook of Project Management, 1st edition. AMACOM: 1993, p. 91.

ADVANTAGES	INCONVENIENCES
Clear identification of overall project responsibility	Duplication of effort and resources
Good systems integration	Limited development and accumulation of know-how
More direct contact among different disciplines	Employment instability
Clear communications channels with client and other outside stakeholders
Clear priorities
Effective trade-offs among cost, schedule, and quality	May tend to sacrifice technical quality for the more visible variables of schedule and cost
Client-oriented
Results-oriented

FIGURE 5-3. CHARACTERISTICS OF THE FULLY PROJECTIZED STRUCTURE

Adapted from Brain Hobbs and Pierre Menard, “Organizational Choices for Project Management,” in AMA Handbook of Project Management, 1st edition. AMACOM: 1993, p. 90.

Resource Plan

The resources needed to accomplish the project—personnel, supplies, materials, facilities, utilities, and information/expertise—are identified here. Resource availability also needs to be determined, including expertise that is not available within the organization, which can be supplied via hiring, contract, or partnership. Material resources may be available only on the other side of the world, requiring additional planning, time, and expense to secure.

The primary resource planning issues are identification and qualification of the resources required; availability of those resources; quantification, or amount, of the resources required; and timing, or “allocation,” of the resources. Identification and availability of resources are addressed in this section of the PM plan. Quantities and timing of those resources are established during the cost-estimating process and finalized after schedules have been determined. Pricing of resources is how cost estimates are established and becomes the basis for project budgets. Resource allocation is also normally included in the cost estimate section of the PM plan, in the form of a time-phased cost estimate.

Procurement and Logistics Plan

Logistics issues related to major equipment, supplies, or materials need to be planned in advance to ensure manufacturing, transportation, and storage by cost-efficient, safe, and timely means. These issues have become even more critical in the global economy where supply chains are international.

Subcontracting Plans: Subcontracting activity has a direct effect on project costs, schedules, and success, so it normally receives attention early in the planning process. A primary contracting organization may have overall project management and planning responsibilities, but one or more other subcontractors will perform portions of the project, so if subcontracting arrangements are not planned early, project work can be delayed.

This section of the PM plan includes identification of subcontracting laws, regulations, and requirements to be complied with; identification and description of the major subcontracts anticipated for the project; timing of those subcontracts; potential problems or issues associated with the contracts; and approaches and expertise to be employed during the contracting process.

Procurement Plans: The procurement of equipment, materials, and supplies requires planning to reduce the risk of impacting project schedules and to ensure efficient and cost-effective acquisition. On large projects or projects involving R&D or manufacturing of new systems, key equipment or parts may themselves need to be developed and specially manufactured. In cases involving long lead-time items, procurement planning occurs long before the items are needed on the project, in order to initiate the design and procurement processes for those items.

Logistics Plans: The timing, transportation, delivery, storage, and usage of project materials, supplies, parts, or equipment must be planned, coordinated, and managed for the project to be successful. Unavailability or damage during shipment, storage, or handling causes major problems at the job site. Large organizations may have well-established systems and procedures, or organizations responsible for logistics; those organizations and procedures should be identified in the PM plan.

This section of the PM plan includes plans related to the physical aspects of procurement: when items will be delivered by vendors; transportation and handling during shipment; warehousing, storage, kiting, and handling at the job site, including inspection, testing, and acceptance procedures; and distribution to project participants as needed for completion of project tasks. Systems and expertise needed to track, manage, and report status on procured items are identified, along with the schedule and approach for establishing those systems and functions. Responsibilities and procedures are identified and defined.

Logic and Schedules

All project work must be scheduled. Schedules include milestone lists, summary schedules, and detailed schedules. This section of the PM plan includes those schedules and the logic and network plans necessary to develop them.

Networks and Logic: Network planning, not to be confused with the computer networking application of the term, is the practice of identifying activity relationships so that they can be factored into the schedule. In their simplest form, network plans are simple flow diagrams displaying the order in which activities are to be performed, which activities cannot be started or completed before other activities are started or completed, and what activities must be completed before the overall project is complete. The PM plan, however, should describe the logic applied and establish networks as the basis for the schedules.

Summary Schedules: The summary schedule corresponds to the upper levels of the WBS and identifies key milestones. Additional levels of schedules are developed as required and are compatible with one another, the management summary schedule, and the WBS.

Milestone schedules are simple lists of top-level events (i.e., the completion of the key tasks or activities) with planned dates. These same lists are used for reporting schedule progress by adding a column for completion date information. Milestone schedules, networks, bar charts, and activity listings can be included in the PM plan. Detailed schedules may be provided in the appendix.

Cost Estimates, Budgets, and Financial Management

Every PM plan includes a cost estimate, a budget, or both. The cost estimate is normally in table format and includes a summary of costs for each major task or element of the project. Financial management includes systems and procedures for establishing budgets, reporting financial information, controlling costs, and managing cash flow.

Cost Estimates: The most straightforward method of estimating costs is to assign a cost to each element of the WBS or each activity in the schedule or network. Costs are estimated by identifying the resources needed for each activity, in what quantities, and at what price. The pricing of the resources depends on the timing, so normally a cost estimate is not finalized until project activities have been scheduled.

Budgets: Budgets are cost estimates that have been approved by management and formally established for cost control. Actual costs are compared to budgets as the project is completed, to identify variances and potential problems, and to provide information on what the costs will eventually be (at completion). The budgeting process often includes extensive reviews and revisions of cost estimates to arrive at the final budget.

Financial Management: The requirements, systems, procedures, and responsibilities for project financial planning, management, and control are addressed in this section. Financial control includes cash flow management as well as conventional cost control (standard cost accounting, cost performance reporting, and cost productivity assessment).

Cash flow management involves traditional income and expenditure reporting and analysis. On most projects, funding and funds management are critical, representing the timing at which resources can be scheduled and work accomplished. Cash flow planning and reporting procedures and responsibilities are established in the PM plan. Where corporate or enterprise financial information systems will be used for financial management, those systems and procedures should be identified.

Risk and Opportunity Plan

Project activities associated with new research, technical developments, or other tasks that have never been done before must be assessed for potential risk events. Opportunities should also be considered. Risks and opportunities may be associated with the external environment—economic or political conditions, weather, geography, public opinion, or labor-related factors. Stakeholders are an important source of increased uncertainty, so they should be carefully assessed. This section of the PM plan provides an opportunity to consider project risks, opportunities, and contingency plans. Topics suggested for this section are risk and opportunity identification, analysis, and mitigation, as well as contingency plans and reserves.

Risk and Opportunity Identification: The stakeholder management plan and the WBS can be used to identify risks and opportunities associated with specific elements of the project. Each WBS element should be assessed. Risk is higher when new or unproven technologies are required, but these may also yield opportunities. Greater uncertainty is expected when all aspects of a task or project element are not yet planned in detail. Finally, risks, both positive and negative, are generally higher during the early stages of a project.

Risk Analysis: Risk analysis includes a detailed discussion of the risk or opportunity, including both internal and external factors. An impact table is prepared with factors assigned based on technology status, planning status, and design/project status. Finally, the potential cost and schedule impact is assessed. The impact table includes a worst-case (or best-case) cost estimate for each of the project elements included.

Risk Mitigation Plans: Once risks have been identified and assessed, strategies are needed to mitigate them: technology development, modeling, demonstrations, peer reviews, replanning, changes in project logic, reorganization of project participants, contractual changes, and so on. The idea is to adapt a proactive, planning-based approach to risk assessment and to minimize project risks through specific actions. A similar approach can be taken to maximize benefits from potential opportunities.

Contingency Plans and Reserves: Changes to technical requirements or schedules require a reevaluation of contingency reserves. Risk analysis can be performed in conjunction with cost estimating when estimates of contingency reserves are calculated. Cost estimates may be inaccurate for various reasons, such as engineering errors or oversights, schedule changes, cost or rate changes, external factors, construction or implementation problems, or estimating errors. The amount of reserves depends on the funds available, overall riskiness of the project, the management approach, and other factors.

Quality and Productivity Plan

Project management planning itself is a productivity improvement process. This section of the PM plan is where total quality management planning, quality management systems planning, quality assurance/quality control planning, technical performance measurement, and productivity improvement are discussed.

Quality Management Systems Planning: Although quality may be defined in terms of technical performance of end products, value to the customer is also a key measure. Technical quality and customer satisfaction are increased by establishing systems and procedures for ensuring high performance. That means well-defined project requirements or specifications, systems for comparing progress to specifications, and effective feedback mechanisms. This part of the PM plan contains or refers to quality management systems or procedures to be utilized on the project.

Quality Assurance/Quality Control: Quality assurance (QA) is a process of establishing performance standards, measuring and evaluating performance to those standards, reporting performance, and taking action when performance deviates from standards. Quality control (QC) includes those aspects of QA related to monitoring, inspecting, testing, or gathering performance information, as well as actions needed to ensure that standards are met. QA and QC both require discipline and systematic approaches to defining and measuring technical performance. For large projects, formal systems and procedures are necessary, and these can be described or listed in this section of the PM plan.

Technical Performance Measurement: Technical performance measurement is the evaluation of performance against standards, criteria, or requirements established for a project. A procedure is established to evaluate each element of the WBS for technical performance status and for taking corrective action. Evaluation can be by a design committee, chief engineer, QA organization, or group of technical experts.

Productivity Improvement: Productivity improvement, or reductions in the time and costs to accomplish project objectives, calls for planning and monitoring. Plans, schedules, and cost estimates can be evaluated for process and performance improvements. Cost-saving methodologies, such as value engineering, can be applied to designs and technical plans. Cost estimates can be subjected to “sensitivity analysis,” which identifies areas of the project where the most probable savings can occur. Company procedures, systems, or processes can be reassessed for improvements regarding paperwork, staffing, or time. New products, methodologies, or technologies might increase productivity. Employees also may be encouraged to identify productivity improvements, cost savings, or time-saving processes. This section of the PM plan identifies which of those strategies will be used.

Environmental, Safety, and Health (ES&H) Protection Plan

This section identifies the environmental compliance laws, regulations, and requirements that must be satisfied on the project, and how they will be complied with. It describes steps to be taken by the project team to protect the environment, the public, and project participants.

Safety and Health Protection Plan: In the project safety plan, each element of the WBS is assessed for safety issues, including potential hazards, opportunities for accidents, and government regulatory requirements. The systems, procedures, and steps to be employed to ensure a safe workplace are described. Organizational procedures can be referenced as needed, but must be identified for each project.

ES&H Management/Information Systems: The systems and procedures to be used for managing and reporting information related to environmental, safety, and health (ES&H) activities on the project are identified and described. Responsibilities and interfaces with outside organizations, often key to compliance with ES&H regulations, are also documented. A matrix chart is used for projects where multiple regulations, systems, and organizations are involved.

Emergency Preparedness Plan: Emergency preparedness addresses such issues as fires, storms, floods, power outages, sabotage, terrorism, and the loss of key personnel. Preliminary planning identifies the people who will take charge in each type of emergency. Public services such as fire stations, ambulances, hospitals, police, and evacuation routes can be identified.

Security Plan

Every project involves security issues that need to be dealt with.

Physical Security: Plans for providing physical security (gates and fences, guards, electronic access systems or surveillance devices, badges, or contracted security services)—including requirements, responsibilities, tasks and activities, timetables, and procedures—are described or referenced in the PM plan.

Property Protection: Property protection against loss, theft, or damage is needed whenever a project involves the acquisition or use of materials or equipment, including hardware, software, vehicles, tools, and other assets. Property protection may also require detailed property management information systems, procurement tracking systems, training, and experienced personnel.

Information Security: For some projects, information security may be the most important security issue facing the project manager. As a project proceeds, key information is generated, including technical information (e.g., design specifications, vendor data, engineering data), cost and schedule information, contract-related information, correspondence, plans, and progress information. Loss of such information could be devastating to a project or, indeed, to the entire organization. This section of the PM plan contains the plans for insuring against loss or damage of key project information. An information security manager for the project may be needed to control access to information; to coordinate passwords, codes, and file names; to ensure backup systems and databases; and to ensure proper usage of procedures and protocols.

Project Planning, Control, and Administration Plan

The PM plan is the major plan for the project, yet it may be just one of many plans prepared, especially if the project is large, complex, and involves many different organizations. If more than one management plan is prepared for the project, they are identified and described here. On large projects a hierarchy of management plans is common, with each participating organization preparing a management plan for its portion of the project. A table should be developed identifying all the plans to be prepared and their relationship to one other.

Detailed Work Package Plans: Work packages are the lowest level of project work assigned to individuals. Project activity at the lowest levels of the WBS is planned in work packages, which describe in detail the work scope, schedules, and costs associated with the work. Work package plans are summarized and consolidated to support the information contained in the PM plan. The work package planning process to be used, the assignment of responsibilities, the formats to be used, and the planning procedure can be described in this section of the PM plan.

Project Control: Project control involves procedures, processes, and methods used to determine project status, assess performance, report progress, and implement changes. In addition, on large projects there may also be the need for a formal work authorization process, which documents task agreements prior to the start of work.

Work Authorization: Work authorizations are documents that describe work to be performed, have cost estimates (or budgets) and scheduled performance dates identified, and are negotiated and agreed to by a “requesting” organization and a “performing” organization. Work authorizations are common in large companies doing business with the United States government. The work authorization forms and procedures to be used on a project are described in this section of the PM plan.

Cost and Schedule Performance Measurement: The methods and procedures to be used to assess schedule status and how much work has been accomplished over the life of the project are described in this section of the PM plan. For instance, the process and responsibilities for assessing the completion status of each activity in the project schedule are outlined here, as well as any methods to be used for measuring quantities of work completed. Systems and procedures for cost collection, accounting, and reporting are outlined in this section as well. The procedures, systems, and responsibilities for administering and controlling changes to a project’s work scope, schedule, and budgets (or cost estimates) are also described in this section of the PM plan. Formal change control systems are required to ensure that plans, baselines, design, and documentation are not revised without appropriate reviews and approvals.

Project Administration: This section of the PM plan describes the reports, meetings, and record-keeping processes. Formats, procedures, and responsibilities are outlined and defined for major reports. A list of reports to be prepared, with distribution and responsibilities identified, can be included in this section or in the appendix. Major management meetings to be conducted are identified, including review meetings with customers or management, status meetings, change control meetings, and special meetings to transmit key information. The system, procedures, and responsibilities for administrative records management on the project may be addressed in the document control section of the PM plan, or included here.

This section may also contain an overview of procedures and responsibilities associated with administering key contracts. Performance measurement and reporting by contractors is described, contract requirements identified, and subcontract management activities identified, including site visits, meetings, and technical reviews.

Documentation and Configuration Management Plan

This section of the PM plan identifies the documents to be prepared on a project and establishes the administrative approach, systems, and procedures to be used to manage that documentation.

Documents include plans, administrative documents and records, technical data, engineering and construction documents, procedures and systems-related documents, reports, and correspondence.

For each major element of the WBS, a list of documents for each participating functional organization is developed. That list includes documents related to management and administration; technical specifications and requirements; R&D, design, and engineering; manufacturing; construction; start-up; operation or production; and contracts, compliance documents, and documents prepared by entities external to the project.

Responsibilities are identified, from initial preparation of the documents through changes, reviews, and approvals, and a distribution list. In addition, document storage and control is addressed. A document responsibility matrix is a simple method for communicating the plan for document control. The responsibility matrix lists the documents, and then identifies responsibilities for document preparation, revisions, approvals, distribution, and storage.

Document storage is a huge issue for large projects, no less now than when it entailed buildings full of file cabinets. Document storage issues include document identification, version control, data security, and so on.

A document numbering system can be based on the WBS, the project organizational structure, the date, or any other logical order. The numbering system is then used to organize and store project documents and to find the documents over the life of the project.

Security against fire, damage, or theft is also addressed and described in the PM plan, as are backup files for automated data storage systems. Access requirements and plans are also described, including a list of those who will need access, what kind of access (e.g., online, complete, extracts, etc.), the frequency of access, and how that access will be monitored.

Configuration Management. Configuration management can be defined as the process of identifying and documenting the functional and physical characteristics of products, facilities, or systems; of controlling changes to those items and associated documents; and of reporting status of the items or changes to those who need to know. [Note: The term configuration management has had other precise connotations on information technology (IT) projects. When communicating between project management and IT personnel, be careful in your use of terms to avoid misunderstanding.] The objective is to keep project technical documentation consistent with the project systems, products, hardware, or facilities involved. Where a comprehensive document control system has been implemented, configuration management can be an expansion of the processes for the technical documents and systems.

On projects for government agencies, configuration management requirements may include compliance with detailed laws, regulations, or contract clauses. This is especially true in such industries as nuclear power, military/weapons systems and procurement, space-related contracting, transportation, and other areas potentially involving environmental, health, or safety issues concerning the general public.

The technical systems, components, facilities, and products that comprise the project and associated technical documents are identified in the PM plan. Technical baseline documents consist of the documents associated with research, design, engineering, fabrication, installation, construction, start up, and operation of each of the technical systems/components of the technical baseline.

Configuration control involves the procedures for administering and controlling changes to the technical baseline and associated documents. Configuration control parallels the more general document control process but places more emphasis on controlling changes to the design and technical configuration of the systems themselves. The configuration control section identifies how changes to the technical baseline are made and fixes the associated responsibilities and procedures for keeping technical documents current. Procedures and responsibilities are identified in a matrix format along with necessary narrative explanations.

A method is established for communicating configuration changes and status information to those who need that information. In general, a procedure with distribution lists for specific documents or system will suffice, provided that responsibilities are assigned for distribution of technical information and documentation.

Appendix

The appendix provides a place to include or identify supporting information, allowing the body of the PM plan to be kept concise. In some cases, where a section of the PM plan is prepared as a separate document (for instance, when required by law), it can be included in the appendix and referenced in the PM plan.